real money. and news at the top of every single hour. thank you for watching. >> tent towns are popping up - at what cost. we go to a west virginia city taking drastic measures to pay its pensions. what is it like living in the middle of distress in detroit. i'm very well , this is real -- i'm ali velshi, and this is real money. >> welcome to real money, you are the most important part of our show. tell me what you think by tweeting me at:

>> american companies are addicted to terms - temporary work position have grown ten times faster since the great recession. we are not talking about the kelly girl in offices. many terms work low-wage jobs in warehouses, packing boxes in factories. it gives rise to temp towns where staffing agencies provide workers to companies that want flexibility. the flexy ibility comes at a cost. >> this is what you'll see in the early hours. workers lining up to get a day's work. >> you may not start at six or seven or 7:30. most workers will be at an agency from 4am to 4.30.

on the outskirts of chicago these workers get into vans travelling up to an hour away ux. >> when the chicago area, some of the well-known companies that use temp labour - wall smart, smyrnoff, start sampling, they work at the mckormic reception center. the number of temporary jobs in the u.s. grew more than 50% to 2.7 millions. sisero cluster their factories - they are to dense with temp agencies, that they are temp towns. >> temp towns are old industrial cities where new waves of immigrants come to live. the temp industry situated concentration of agencies to take advantage that of labour.

>> you have a hovels in the suburbs and little village and so on, where you have high unemployment and people are straight. >> 30 miles away a mexican resident rents a room, a temp up to home to a dozen staffing agencies. >> when i came to the country, at the different agency only with job temporary for one month, for one day, for one week, for two days - no, no permanent. >> in her 15 years of temporary work, rosa had about 100 different jobs paying the illinois minimum wage $8.25. she made air filters, packed boxes at this company, start sampling, producing promotional samples including kraft and johnson & johnson. >> something that changed is the

volatility in the business. the highs are higher. the lows are lower. >> larry burns is president of start sampling, using between 20 and 250 temporary workers at any given time. >> the temporary workforce allows us to do whatever work needs to get done. >> he says the market dictates what he has to pay. >> if i'm in a situation where we are in a competitive battle to win. my customers are very concerned with every half cent when it comes to an assembly or packaging. it makes it difficult for us. >> lat eenos are 20% of the temp workers. like rosa, many are undocumented. organisers estimate two-thirds of temp workers don't have proper working papers. studies show temp workers rarely get benefits, suffer higher

injury rates and earn 25 prz less. and some agencies impose fees. >> we talk about a long-term temp track, and long-term it's debilitating. >> jeff jarrod is the ceo of mann power and says major temp suppliers treat and pay workers fairly and shouldn't be grouped with other staffing agencies. >> it's like looking at fast food as a whole and comparing a large chain to a corner store that hasn't cleaned their griddle in 10 years. we are paying market rates. if you look over the last 15-24 months there has been an increase in the average pay through all the workers of about 3.5%. >> many temp workers rarely saw their pay increase. >> regular jobs you'd live from

pay check to pay check. in a temp staffing agency you are looking to survive. brandon made a living as a plastic injection moulding technician. he turned to temp agencies when work dried up. >> a few times i get close to a permanent position. but then people were laid off. there wasn't not enough work. >> research shows one in four temp jobs leads to permanent positions. for workers like rosa it means a daily struggle to earn a living. >> we contacted walmart and other companies named in the story. they said in essence that temporary workers have been part of their business models and stressed this they make up a small percentage of their total workforces. >> ever thought of packing up your belongings and heading to rural america, to wide open

spaces and no neighbours. that is is reason why huge parts of montana is enjoying an increase in 30 to 49-year-olds. others are returning to be closer to family, others by technology making small towns economically viable. >> for three days at the end of july white sulphur springs, a small town of 900 attracted almost 11,000 visitors. it's the third annual red ants pants music festal founded by sara, who moved here to start her small business. >> i grew up on a farm in conneticut, and spent five years working in the back country. i was tired wearing work pants for men. >> sales have tripled since the

store launched in 2006. last year's profits more than $150,000 - she was invited to attend a small business leaders' forum at the white house. >> there's a surprising amount of traffic, seeing we are in the middle of nowhere, but sell 70% of our sales online. >> 120 miles nor in a town steeped -- north in a town steeped in history is a town with 1500 residents. we speak to the farmcyst. >> when i moved here we did 95 scripts a day, now it's 220. when we heard fiber optics were coming to fort benton, we decided to implement a telepharmacy. >> there is a booth - the patient can go in there and i can control the camera from

here, and i can look at anything that they have and i can make a recommendation based on that. >> call hoon and hackett say lifestyle and family lured them to small-town montana. technology helped them thrive. >> i wouldn't be in business if it weren't for the internet. it's the new age of business where it's not location, location, location, it's how good is your website. >> ben winchester says this trend started in the 1990s. there has been a rural revival in the past decades, particularly in the 30-49 age group. people are moving to rural places that have an experience in overall population loss. >> a poll conducted by the center for rural affairs shows 77% of respond ents under 30 feel better about staying or returning to rural america. >> 75% of the counties in

montana experience an increase in the young adult and family age groups. >> as we dig deeper, while the state gained people, it's primarily in the urban areas. we see the 30-35 age group. >> a reason is an improved infrastructure, especially a broadband program rolling out across montana. the obama administration recovery act has enabled rural broadband to be expanded across america. >> if you look at the montana broadband map, we have higher speeds than many of the other ushan communities. >> another reason is more loan and grant programs from u.s. and local government.

here the economic development office works as an intermediary. >> we are good at lefageing other funds, putting together equity. >> michael is an apple orchardist who moved to the valley and benefitted from the program. >> i had cash to buy the land and helped me with a $60,000 to pay for the trees, build a trellis, fence, irrigation. >> he hopes to sell his apples next year. he works part time as a landscaper to support his family. >> the cost of living is high out here. wages are low. no one would move out here for work. you have to create your own living, if you want to make a real living out here.

>> according to the kaufman index of entrepreneurial activity, montana had 5.3 entre presentures, making it number one for entrepreneurial activity. last year it was 17. charleston west virnalinnia is tapping taxpayers to pay pensions for police and pensioners. >> and detrait - 139 square miles of abandoned buildings. we introduce you to a man who photographs those buildings. >> we are on the east side of detroit. it's over run with crypts. >> we this that personal story and more:

conversation we introduce you to conversation conversationmiles o

conversation conversation >> dedroit's bankruptcy filing

has folks in other cities with underfunded pensions worried. they don't have enough money to pay to current and future retirees - like policeman and firefighters. it has forced them to turn to taxpayers. we report on a west virginian city taking steps to stay out of bankruptcy and keep the peptioners paid. >> charleston, west virginias first responders dealing with a barricaded gunman. for services like this, after 20 years on the job they have access to health care and generous pensions. >> they are sweet. you can retire with $50,000 a year for the rest of your life. >> the mayor says the 50,000 residents are paying the price for payouts that can exceed $1 million for each retiree. there's so little money that the city dips into the general fund

to keep 450 pensioners paid. that fund was used for street cleaning and salaries is made up of taxpayer dollars. the slice to retirees is rising. >> we pay 8% of the budgett into the retiree systems, we are paying 11.3. the mayor stopped pay out after it plummeted after the recession. the pew center for chaar itable trusts said charleston had one of the worst-funded pensions. it had $0.24 for every dollar it promised to pay retirees. the 100 largest cities in american were underfunded by $99 billion. standard & poors said the shortfall for states in 2011 totalled more than $830 billion. >> in the late "90s, early 2000s, pension funds were

close to 100% funded and generous benefits were given during the budgetary recessions. some systems is it contributed less. >> moodies says taken together the states have $0.48 for every pension they promised. pensions guarantee a monthly payment for life. if the assets of the plan shrink to nothing. as detroit may learn bankruptcy is no guarantee that cities can avoid paying pensioners. that's a reason charleston is seeking steps to cut costs. >> we were heading towards bankruptcy if we stayed on the course. the city is about to impose a sales tax and put police and fire hires and a state peption -- pension, shut down fire stations and is charging everyone in charleston a $2 a

week fee. unless they can reduce benefits taxpayers will have to foot the bill of underfunded pensions. >> in 2013 every state had one bill that addressed some sort of pension reform, including puerto rico, meaning more costs for employees and employers or more costs for taxpayers. >> in an odd twist charleston is considering not accepting federal grants that pay for programs like dui cheque points. free money is great. it's current and nobody is looking at the long-term effects of those. >> programs cover overtime pay, but the pay boosts their peption checks for life. >> for every dollar in wages we pay $5 in retirement eventually. there is an impact. >> it's an impact more cities, states and people like

charleston chief is facing. when i came here 20 years ago i envisioned being able to survive after i hit the age of 50 and be able to put food on the table. >> row has a year before he receives a pension and hopes the system will do as much for him as he's done for it. >> charleston officials tell us the city's pension is underfunded by $274 million. steps now tape should have the pension fully funded in 30 years. this week we launched a store in a series called what's it really like. what it's like living in abandoned buildings in detroit. a fifth of all buildings are home to squatters, crimes and violence. the man in charge of the city's breakups si proposed spending $400 million. another man sees beauty.

by day tony works for chrysler, and spends the rest of the time taking photos of the city's decay and distress. >> i'm tony mica, people may know me as tony detroit. as of right now i have over 350,000 followers on instagram. pictures i post are basically pictures i see every day being a detroiter. old architecture, homeless people, abandoned buildings, burnt-out buildings. when i walk out the front door it's different to any other city - big city in america, i believe, in the sense that even on a saturday night it's pretty desolate. looking through my instagram account, you can pull up pictures of many different areas of the city.

here is one from south-west detroit. a lot of houses look as if it was abruptly abandoned - clothes in the draws, food in the refrigerator. one of my favourite interor abandoned houses. and the abandoned brewster projects. it was open in 1935 - the first low income housing in the country. the history is here. smokey robinson played basketball here and lived here. lily tomlin, aretha franklin - a lot of mow town lives here. a few instances where i was threatened was in the brucer center - a lot of gangs - which is why they are tearing it down. the eco system from a blighted community is drugs. we are on the east side of detroit. it's overrun with cipt.

it's one of the most blighted parts of the city that i have known. they are either boarded up, burnt down or - hold on, bumpy ride - or they have turned into drug houses. i don't think anyone lives on this block whatsoever, which is why the road is in disrepair. okay. damn it, this is not good. the people in the doorway. it's one of the most dangerous areas of the city. the street of hollywood on the eastside of detroit feels to me more so than any other street because of the abandoned houses. you can tell search heart and soul was put into the making of it. they are left to rot. we are at a house. it's been my favourite house to

shoot because of the old architecture. anybody home? hemo. the first rule, as you go into an abandon building, announce yourself. you don't want to startle squatters. i see a baby toy at the foot of the stairs. everything i capture is how i find it. seldom will i move an object. >> detroit changed me. for people who say, "i only photograph the negative of detroit", i beg to differ. i think i show the world that, "hey, look at me, give me some help. come at me, but detroit is my life, my love. i will never talk bad about her. >> he met his wife natalie on instagram, and they take pictures throughout detroit together. >> many of us love to make major league athletes. all sorts of

people line up and asking you for money. >> i'm stacy ties dale in los angeles. we can learn from a former nfl star who gave a loan to a friend. his story coming up. >> that story and more as real money continues. keep it here. ç]

>> let's say you were making hundreds of thousands or millions playing ball. what could you do if a friend asked you for a loan.

say yes, right. as former star rod barksdale learned, you may want to think twice. stacey tisdale went to los angeles to find out what we can learn. >> when rod was trying out for the olympics here an at the los angeles collo see um. he made it as far as the quarterfinals. fate dealt an unexpected handism. >> i pulled a ham stripping -- hamstring. >> and barkdale contacted the los angeles raiders. the rest is the history. he was signed as a wide receiver and earned about $200,000 a year over his five-year career with the raiders and dallas cowboys. an impressive salary. not only was barksdale surprised

by his success, but the friends and families noticed his win fall. >> i would not hesitate to hep them. i never forgot what it was like to grow up with a want list being huge. >> in 1987, barksdale didn't hesitate when a friend asked him for a $20,000 loan as a down-payment on a house. >> i said, "give it back to me when you can", in my mind i thought 6 months. he could not imagine that it would take five years. well aware of the fact that nfl careers end he had other plans. >> i'll take the money, it will go way in front of me and i'll catch up with it. that was my thought process. >> friends in need catch up to many nfl players. personal loans are a top reason 80% are broke within two years

of retirement. dr janet raymond says there's a delicate balancing act between human nature and knowing when to step back. >> there's a difference between helping and rescuing. most people don't give themselves a second to think about what they are doing in those moments. >> barksdale moved on and started a successful electrical surveillance country. ask what he would have done differently? >> i would have sat down and said what is this - what are we really doing here, what is the traction. forget about being friends, let's talk about the transaction. >> barksdale said he would have put more money away before considering giving a loan, in case the original play did not work out as planned. >> barksdale encourages athletes to come forward with personal stories about money so others can learn how to handle their finances. that's our show for

today. thanks for joining us. i'm ali velshi, see you next time on real money. >> hello, welcome to the newshour. i'm here from doha. coming up in the program - pakistan's high ranking general is assassinated putting peace talks with the taliban in gepp di. egypt's military parade captured in a big operation in the signied. >> images of the "costa cordia" as engineers prepare